Hempel A/S has reached an agreement to acquire Hempel-Hai Hong in China. The deal is completion expected to close on January 5, 2009 and will cost Hempel A/S ~$170 million (DKK $1 billion). Increasing its share in Hempel-Hai Hong from 36% to 100% will give Hempel A/S full control of its activities in China. Hempel-Hai Hong has a strong brand identity and is already responsible for 25% of Hempel A/S’s global turnover, making it one of the leading companies in the Hempel Group.

Ever since its creation in 1991 as a joint venture between the Hempel Group and China Merchants Holdings (International) Co. Ltd., Hempel-Hai Hong has been a successful operation. Now both parties have realized the need to focus on their respective core businesses—ports and port-related activities for China Merchants Holdings (International) Co. Ltd., and worldwide marine, protective and decorative coatings for Hempel A/S.

“China Merchants’ understanding of business in China and their good connections at all levels of Chinese society have been essential in building a strong position in the region,” said Hempel CEO, Pierre-Yves Jullien. “I believe the deal will provide the Hempel Group with significant opportunities for growth.